Ireland's domestic economy was "severely" hit by the coronavirus pandemic in the first half of the year, but strong exports by multinationals have cushioned the fall in growth, according to an economic forecast by the European Commission.
The European Commission's Autumn Economic Forecast said that unemployment has been held at bay by the Government's income support schemes.
But it added that the overall contraction and the fiscal stimulus are expected to "significantly widen" the budget deficit, and future risks to the economy remain "exceptionally high".
As well as the shock to the domestic Irish economy, the pandemic has caused a "collapse" in investment. Overall, the Commission said the pandemic has caused a "very large shock" for